Impact of E Business on an Organization

Only available on StudyMode
  • Download(s) : 174
  • Published : February 26, 2013
Open Document
Text Preview
The Impact of Electronic Business on the Organisation
Ronel Smith
Information and Communication Technology - icomtek
CSIR
South Africa
rsmith2@csir.co.za

Abstract
E-business is fast becoming an important initiative for
companies to consider, one that impacts every aspect of
how a business is run. This report investigates the impact
of e-business implementation on various aspects of the
organisation including; strategy, human resources,
customer relationship management, the IT department,
technology, the business environment, trust, service
management and performance metrics. Implementing ebusiness applications will require process redesign, organisational restructuring and alignment, new job
descriptions and reviewed and revised policies.
Organisations will also have to examine tax, legal and
security issues. E-business is changing all the rules and
models. An organisation’s ability to embrace new
technology and business models is key to increasing the
organisation’s productivity.
The Internet economy
necessitates a fundamental transformation of traditional
organisations. The true benefit of e-business is achieved
through the digitisation of the entire value chain. For a
successful e-business implementation it is important that
decision-makers understand the nature of these changes,
their potential impact, plan for them and manage the
entire process in such a way as to ensure buy-in of all the
relevant stakeholders. The decision to implement an ebusiness initiative should not be undertaken lightly and the benefits that can be gained from such a venture must
be investigated thoroughly before deciding to go ahead.

1.

Introduction

Timmel [24, p.22] quotes W. Krenz, Vice President of
A.T. Kearny as saying “In 1999, the best chemical
company had the best chemists. In 2005, the best
chemical company will have the best e-professionals.”
This is true not only for companies in the chemical
industry, but for all companies in all industries. EBusiness is fast becoming an important initiative for companies to consider, one that impacts every aspect of
how a business is run. This report investigates the impact
of e-business implementation on various aspects of an
organisation. The way in which companies and end-users
conduct business will change, ultimately driven by the
emergence of new business models brought on by the
evolution of the Internet.

Hecker [10] defines e-business as any process that a
business organisation conducts over a computer-mediated
network. It includes buying and selling, as well as a wide
range of customer-, production- and management focused
processes carried out by for-profit, government or nonprofit entities. E-business is based upon the processing and transmission of digitised information, including text
and visual images from one computer or some other
electronic device to another. E-commerce is that part of
e-business which involves buying and selling goods and
services. According to Agarwal, e-business is any netenabled business activity that transforms internal and external relationships to create value and exploit market
opportunities driven by new rules of the connected
economy.
Furthermore, e-business involves the
continuous optimisation of an organisation’s value
proposition and value-chain position through the adoption
of digital technology.
Implementing e-business applications will require
process redesign, organisational restructuring and
alignment, new job descriptions and reviewed and revised
policies. Implementing e-business applications will also
require organisations to examine tax, legal and security
issues [13]. E-business is changing all the rules and
models. An organisation’s ability to embrace new
technology and business models is key to increasing the
organisation’s productivity.
E-business impacts the value-chain processes in the
exchange of goods, money, services and information.
Basic market elements –...
tracking img